Understand the Overall Diagnostic Industry

The diagnostic industry encompasses the development, production, and sale of tools and tests used to identify diseases or health conditions in individuals. This includes laboratory tests, imaging technologies, and other diagnostic tools such as genetic testing.

Types of Diagnostic Industries:

The diagnostics sector has main two divisions: 

1. Pathology, which is offered by all and generates roughly 58% of industry income, and deals with testing for all serious diseases.
2. Radiology, which generates 42% of industry revenue, deals with imaging diagnosis like x-rays, CT scans, and ultrasounds.

The industry is experiencing significant growth due to factors such as an aging population, increasing prevalence of chronic diseases, and advancements in technology that have improved the accuracy and speed of diagnostics. Major players in the industry include multinational corporations and smaller specialized companies.

Diagnostics Market 

India's diagnostic labs market, which had market of USD 14796.21 million in 2022, and its anticipated to expand at a CAGR of 11.53% from 2017 to 2023. According to various DRHP documents, the radiology category has a more potential to grow in the upcoming years (Estimated at Rs 425 billion by FY23).

Statistics of Diagnostics Market

Increased demographics, urbanisation, penetration, and better test results will be the main drivers of this expansion. There are around 100,000 labs in India's diagnostic market, which is highly fragmented. 

• Standalone facilities hold a 48% market share of the $10 billion market 
• Hospital-based laboratories with a 37% share 
• National chains with a meagre 5% share. 
• Pathology, which makes up 57% 
• Radiology accounts for 43% of the market. which includes procedures like computed tomography (CT) scans, magnetic resonance imaging (MRI), colour Doppler ultrasound scans, etc., 

It is also anticipated that the emergence of corporations and multinational businesses in the nation, which are working with various hospitals and diagnostic labs to have health exams performed for their employees, will accelerate market growth in the upcoming years. 

Additionally, India is developing into a centre for medical tourism, and many medical tourists are coming to the nation to receive treatment due to the availability of affordable and superior treatment options.